Table of Contents
ACCOUNTANCY Issue Of Shares MCQs With Solved Answers
ACCOUNTANCY Issue Of Shares MCQs With Solved Answers
(Question 1 t0 5)
1. What Journal entry will be passed in the books of the Company for interest on Calls in arrears due from a Shareholder?
(a) Sundry members A/c Dr
To Interest on Calls in Arrears A/c
(b) Interest on Calls in Arrear A/c Dr
To Sundry members A/c
(c) Statement of P&L Dr
To Interest on Calls in Arrears A/c
(d) None of These
2. How are calls in Advance shown in the Balance Sheet of the Company?
(a) Under current Assets
(b) Under the Current Liabilities sub-head other current liabilities
(c) Under Non- Current Liabilities
(d) Added to Share Capital
3. According to SEBI, minimum subscription needed for allotment of share?
(a) 80%
(b) 10%
(c) 90%
(d) None of These
4. Which of the following groups not included a company could issues shares for consideration other than cash?
(a) Issue of shares to promoters
(b) Issue of shares to Underwriter
(c) Issue of shares to Vendors
(d) Issue of shares to General public for cash
5. As per Table F, the schedule of the companies ACT 2013, Interest may be Charged on calls in Arrears at a maximum rate of?
(a) 10% p.a.
(b) 8% p.a.
(c) 12% p.a.
(d) 9% p.a.
Also practice: Issue of Shares MCQs With Solved Answer
Answer – Question Number 1 To 5
1. Answer- (a) Sundry members A/c Dr
To Interest on Calls in Arrears A/c
2. Answer- (b) Under the Current Liabilities sub-head other current liabilities
3. Answer- (c) 90%
4. Answer- (d) Issue of shares to General public for cash
5. Answer-(a) 10% p.a.
ACCOUNTANCY Issue Of Shares MCQs With Solved Answers
(Question 6 t0 10)
6. As per Table F, the schedule of the companies ACT 2013, Interest may be allowed in calls in Advance at the maximum rate?
(a) 10% p.a.
(b) 8% p.a.
(c) 12% p.a.
(d) 9% p.a.
7. General Reserve is also known as?
(a) Reserve Capital
(b) Capital Reserve
(c) Free Reserve
(d) None of These
8. The Liabilities which may or may not arise because they depend on the appearing of s0me event in the future is known as:
(a) Contingent Liabilities
(b) Current Liabilities
(c) Non- Current Liabilities
(d) Deferred to Liabilities
9. Equity shareholders are ____ of the company?
(a) Owners
(b) Creditors
(c) Suppliers
(d) Customers
10. Minimum Share application money is _____% of the nominal value of shares?
(a) 15%
(b) 10%
(c) 25%
(d) 30%
Also, PracticeISC ACCOUNTS 12 Interest On Capital MCQs with solved answers
Answer – Question Number 6 To 10
6. Answer- (c) 12% p.a.
7. Answer- (c) Free Reserve
8. Answer- (a) Contingent Liabilities
9. Answer- (a) Owners
10. Answer-(c) 25%
ACCOUNTANCY Issue Of Shares MCQs With Solved Answers
(Question 11 t0 15)
11. Current maturities of Long term Debt how is it disclosed in the balance sheet of a company?
(a) Main head current liabilities and sub-head other current Liabilities
(b) Main head non-current liabilities and sub-head Long-term Borrows
(c) Main head non-current liabilities and sub-head other Loans and Advances
(d) None of these
12. Where will be the non-cash transactions be recorded at the time of issue of shares if all the cash transactions are entered in the cashbook?
(a) Ledger
(b) Bank Column Cashbook
(c) Journal Proper or Journal
(d) None of These
13. The amount of general Reserve instead of being utilized in the business is invested outside the business in securities is called?
(a) Reserve Fund
(b) Investment
(c) Government securities
(d) Investment Fluctuation Reserve
14. Which of the following securities premium reserves cannot be issued to write off?
(a) To Writeoff bed debts
(b) To writeoff the preliminary expenses
(c) For buyback of its own shares and other securities as per section 68
(d) For issuing fully paid bonus shares to the shareholders of the Company
(e) For providing the premium payable redemption of redeemable preference shares or debentures of the company
15. Face value of shares ₹10, Premium per shares ₹5, On application₹6, On allotment ₹9 (with premium). One shareholder holding 1000 shares did not pay the allotment money and his shares were forfeited. Out of the forfeited shares the company reissued 800 shares at ₹7 per share fully called up. What will be the amount debited to share capital A/c?
(a) 10,000
(b) 15,000
(c) 9,000
(d) 6,000
Also Practice ISC ACCOUNTS 12 shares MCQs with solved answers
Answer – Question Number 11 To 15
11. Answer- (a) Main head current liabilities and sub-head other current Liabilities
12. Answer- (c) Journal Proper or Journal
13. Answer- (a) Reserve Fund
14. Answer- (a) To Writeoff bed debts
15. Answer-(a) 10,000
ACCOUNTANCY Issue Of Shares MCQs With Solved Answers
(Question 16 t0 20)
16. Face value of shares ₹10, Premium per shares ₹5, On application₹6, On allotment ₹9 (with premium). One shareholder holding 1000 shares did not pay the allotment money and his shares were forfeited. Out of the forfeited shares the company reissued 800 shares at ₹7 per share fully called up. What will be the amount credited to share Forfeiture A/c?
(a) 9,000
(b) 6,000
(c) 10,000
(d) 7,000
17. Face value of shares ₹10, Premium per shares ₹5, On application₹6, On allotment ₹9 (with premium). One shareholder holding 1000 shares did not pay the allotment money and his shares were forfeited. Out of the forfeited shares the company reissued 800 shares at ₹7 per share fully called up. What will be the amount Transferred to share capital Reserve?
(a) 2,400
(b) 5,000
(c) 3,600
(d) 6,000
18. Which of the following effects of the forfeiture of share?
(a) Name of the shareholder is removed from the register of members
(b) Amount already received on these shares is forfeited by the company
(c) Share capital Reduced
(d) All of these
19. What Journal entry will be passed in the books of the Company on payment of interest on Calls in advance?
(a) Sundry members A/c Dr
To Bank A/c
(b) Interest on Calls in Advance A/c Dr
To Sundry members A/c
(c) Statement of P&L Dr
To Interest on Calls in AdvanceA/c
(d) None of These
20. The net gain made by the company on the reissue of shares will be Credited to :
(a) Reserve Capital Account
(b) Capital Reserve Account
(c) Securities Premium Reserve Account
(d) Statement of P/L
Also Practice: Admission of a new partner MCQs with Solved answer 12 cbse
Answer – Question Number 16 To 20
16. Answer- (b) 6,000
17. Answer- (a) 2,400
18. Answer- (d) All of these
19. Answer-
(a) Sundry members A/c Dr
To Bank A/c
20. Answer-(b) Capital Reserve Account